Re:Sales tax creates more unnecessary pain than value added tax
by gravitas on Friday December 11, 2020 @03:36PM
(#25390630)
I believe there is a specific situation in that you must have purchased the goods intending resale (see the other reply explaining raw goods) of a further finished good. Buying something as a consumer, (not) using it then reselling it later is taxable.
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Re:Sales tax creates more unnecessary pain than value added tax
by gamblor956 on Friday December 11, 2020 @03:42PM
(#25390697)
It's not enough to purchase the goods intending resale; you must also be registered as a reseller.
In fact, if you can't provide a reseller's certificate (or license, the exact term depends on the state) then the seller generally must collect a sales tax on the sale.
Re:Sales tax creates more unnecessary pain than value added tax
by rgbrenner on Friday December 11, 2020 @03:52PM
(#25390826)
Correct.. and it's in that specific circumstance: where you are licensed, and for whatever reason the retailer charged you sales tax anyway on an item for resale... then you can file with the state to receive that money back. My point was that there's no reason any retailer or manufacturer would pay sales tax on the inputs for their goods.